10-Q 1 vishayintertech_10q.htm QUARTERLY REPORT
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended           October 1, 2022

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 011-07416

Vishay Intertechnology, Inc.
(Exact name of registrant as specified in its charter)

Delaware  
38-1686453
(State or Other Jurisdiction of Incorporation)
 
(I.R.S. Employer Identification Number)
     
63 Lancaster Avenue
Malvern, Pennsylvania 19355-2143
 
610-644-1300
(Address of Principal Executive Offices)
 
(Registrant’s Area Code and Telephone Number)

Securities registered pursuant to Section 12(b) of the Act:
       
 
Title of each class
Trading symbol
Name of exchange on which registered
 
  Common stock, par value $0.10 per share VSH New York Stock Exchange LLC  

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes  ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)
Yes  ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 
Large Accelerated Filer 
Accelerated filer ☐
 
Non-accelerated filer ☐
Smaller reporting company
 
Emerging growth company
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  No

As of October 31, 2022 the registrant had 129,567,743 shares of its common stock (excluding treasury shares) and 12,097,148 shares of its Class B common stock outstanding.






















This page intentionally left blank.


































2

VISHAY INTERTECHNOLOGY, INC.
FORM 10-Q
October 1, 2022
CONTENTS

     
Page Number
   
         
     
         
     
         
     
         
     
         
     
         
     
         
     
         
     
         
     
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
     
3


PART I  - FINANCIAL INFORMATION

Item 1. Financial Statements

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)

   
October 1, 2022
   
December 31, 2021
 
   
(Unaudited)
       
Assets
           
Current assets:
           
Cash and cash equivalents
 
$
734,992
   
$
774,108
 
Short-term investments
   
182,646
     
146,743
 
Accounts receivable, net
   
425,630
     
396,458
 
Inventories:
               
Finished goods
   
164,252
     
147,293
 
Work in process
   
252,492
     
226,496
 
Raw materials
   
199,133
     
162,711
 
Total inventories
   
615,877
     
536,500
 
                 
Prepaid expenses and other current assets
   
151,144
     
156,689
 
Total current assets
   
2,110,289
     
2,010,498
 
                 
Property and equipment, at cost:
               
Land
   
74,118
     
74,646
 
Buildings and improvements
   
617,784
     
639,879
 
Machinery and equipment
   
2,743,049
     
2,758,262
 
Construction in progress
   
167,336
     
145,828
 
Allowance for depreciation
   
(2,613,506
)
   
(2,639,136
)
Property and equipment, net
   
988,781
     
979,479
 
                 
Right of use assets
   
118,676
     
117,635
 
                 
Deferred income taxes
    85,288       95,037  
                 
Goodwill
   
163,567
     
165,269
 
                 
Other intangible assets, net
   
59,918
     
67,714
 
                 
Other assets
   
94,027
     
107,625
 
Total assets
 
$
3,620,546
   
$
3,543,257
 

Continues on following page.
4


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(In thousands)

   
October 1, 2022
   
December 31, 2021
 
   
(Unaudited)
       
Liabilities and equity
           
Current liabilities:
           
Trade accounts payable
 
$
223,898
   
$
254,049
 
Payroll and related expenses
   
164,303
     
162,694
 
Lease liabilities
   
23,650
     
23,392
 
Other accrued expenses
   
220,542
     
218,089
 
Income taxes
   
84,571
     
35,443
 
Total current liabilities
   
716,964
     
693,667
 
                 
Long-term debt less current portion
   
458,120
     
455,666
 
U.S. transition tax payable
   
83,010
     
110,681
 
Deferred income taxes
   
52,382
     
69,003
 
Long-term lease liabilities
   
95,747
     
99,987
 
Other liabilities
   
84,575
     
95,861
 
Accrued pension and other postretirement costs
   
229,467
     
271,672
 
Total liabilities
   
1,720,265
     
1,796,537
 
                 
Equity:
               
Vishay stockholders' equity
               
Common stock
   
13,291
     
13,271
 
Class B convertible common stock
   
1,210
     
1,210
 
Capital in excess of par value
   
1,351,470
     
1,347,830
 
Retained earnings
   
714,588
     
401,694
 
   Treasury stock (at cost)
    (54,671 )     -  
Accumulated other comprehensive income (loss)
   
(129,093
)
   
(20,252
)
Total Vishay stockholders' equity
   
1,896,795
     
1,743,753
 
Noncontrolling interests
   
3,486
     
2,967
 
Total equity
   
1,900,281
     
1,746,720
 
Total liabilities and equity
 
$
3,620,546
   
$
3,543,257
 

See accompanying notes.
5


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Operations
(Unaudited - In thousands, except per share amounts)

   
Fiscal quarters ended
 
   
October 1, 2022
   
October 2, 2021
 
             
Net revenues
 
$
924,798
   
$
813,663
 
Costs of products sold
   
635,260
     
587,927
 
Gross profit
   
289,538
     
225,736
 
                 
Selling, general, and administrative expenses
   
106,436
     
102,215
 
Operating income
   
183,102
     
123,521
 
                 
Other income (expense):
               
Interest expense
   
(4,110
)
   
(4,427
)
Other
   
2,137
   
(2,679
)
Total other income (expense)
   
(1,973
)
   
(7,106
)
                 
Income before taxes
   
181,129
     
116,415
 
                 
Income tax expense
   
40,566
     
19,333
 
                 
Net earnings
   
140,563
     
97,082
 
                 
Less: net earnings attributable to noncontrolling interests
   
502
     
262
 
                 
Net earnings attributable to Vishay stockholders
 
$
140,061
   
$
96,820
 
                 
Basic earnings per share attributable to Vishay stockholders
 
$
0.98
   
$
0.67
 
                 
Diluted earnings per share attributable to Vishay stockholders
 
$
0.98
   
$
0.67
 
                 
Weighted average shares outstanding - basic
   
142,887
     
145,017
 
                 
Weighted average shares outstanding - diluted
   
143,447
     
145,458
 
                 
Cash dividends per share
 
$
0.100
   
$
0.095
 

See accompanying notes.
6


VISHAY INTERTECHNOLOGY, INC.
Consolidated Statements of Comprehensive Income
(Unaudited - In thousands)

   
Fiscal quarters ended
 
   
October 1, 2022
   
October 2, 2021
 
             
Net earnings
 
$
140,563
   
$
97,082
 
                 
Other comprehensive income (loss), net of tax
               
                 
Pension and other  post-retirement actuarial items
   
1,321
     
1,850
 
                 
Foreign currency translation adjustment
   
(50,070
)
   
(17,242
)
                 
Other comprehensive income (loss)
   
(48,749
)
   
(15,392
)
                 
Comprehensive income
   
91,814
     
81,690
 
                 
Less: comprehensive income attributable to noncontrolling interests
   
502
     
262
 
                 
Comprehensive income attributable to Vishay stockholders
 
$
91,312
   
$
81,428
 

See accompanying notes.
7


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Operations
(Unaudited - In thousands, except per share amounts)

   
Nine fiscal months ended
 
   
October 1, 2022
   
October 2, 2021
 
             
Net revenues
 
$
2,642,103
   
$
2,397,415
 
Costs of products sold
   
1,832,234
     
1,739,458
 
Gross profit
   
809,869
     
657,957
 
                 
Selling, general, and administrative expenses
   
329,691
     
311,800
 
Operating income
   
480,178
     
346,157
 
                 
Other income (expense):
               
Interest expense
   
(12,639
)
   
(13,246
)
Other
   
(2,234
)
   
(12,159
)
Total other income (expense)
   
(14,873
)
   
(25,405
)
                 
Income before taxes
   
465,305
     
320,752
 
                 
Income tax expense
   
108,023
     
58,646
 
                 
Net earnings
   
357,282
     
262,106
 
                 
Less: net earnings attributable to noncontrolling interests
   
1,260
     
659
 
                 
Net earnings attributable to Vishay stockholders
 
$
356,022
   
$
261,447
 
                 
Basic earnings per share attributable to Vishay stockholders
 
$
2.47
   
$
1.80
 
                 
Diluted earnings per share attributable to Vishay stockholders
 
$
2.46
   
$
1.80
 
                 
Weighted average shares outstanding - basic
   
143,983
     
145,000
 
                 
Weighted average shares outstanding - diluted
   
144,470
     
145,455
 
                 
Cash dividends per share
 
$
0.300
   
$
0.285
 

See accompanying notes.

8


VISHAY INTERTECHNOLOGY, INC.
Consolidated Statements of Comprehensive Income
(Unaudited - In thousands)

   
Nine fiscal months ended
 
   
October 1, 2022
   
October 2, 2021
 
             
Net earnings
 
$
357,282
   
$
262,106
 
                 
Other comprehensive income (loss), net of tax
               
                 
Pension and other post-retirement actuarial items
   
4,245
     
5,734
 
                 
Foreign currency translation adjustment
   
(113,086
)
   
(34,906
)
                 
Other comprehensive income (loss)
   
(108,841
)
   
(29,172
)
                 
Comprehensive income
   
248,441
     
232,934
 
                 
Less: comprehensive income attributable to noncontrolling interests
   
1,260
     
659
 
                 
Comprehensive income attributable to Vishay stockholders
 
$
247,181
   
$
232,275
 

See accompanying notes.
9


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)

   
Nine fiscal months ended
 
   
October 1, 2022
   
October 2, 2021
 
             
Operating activities
           
Net earnings
 
$
357,282
   
$
262,106
 
Adjustments to reconcile net earnings to net cash provided by operating activities:
               
Depreciation and amortization
   
121,301
     
125,095
 
(Gain) loss on disposal of property and equipment
   
(372
)
   
(254
)
Inventory write-offs for obsolescence
   
18,197
     
14,960
 
Deferred income taxes
   
8,843
     
(4,208
)
Other
   
4,272
     
8,376
 
  Change in U.S. transition tax liability
    (14,757 )     (14,757 )
  Change in repatriation tax liability
    (25,201 )     -  
Net change in operating assets and liabilities
   
(151,773
)
   
(80,866
)
Net cash provided by operating activities
   
317,792
     
310,452
 
                 
Investing activities
               
Capital expenditures
   
(172,175
)
   
(118,156
)
Proceeds from sale of property and equipment
   
472
     
1,257
 
Purchase of short-term investments
   
(182,079
)
   
(55,491
)
Maturity of short-term investments
   
132,892
     
126,171
 
Other investing activities
   
(199
)
   
347
 
Net cash used in investing activities
   
(221,089
)
   
(45,872
)
                 
Financing activities
               
Repurchase of convertible debt instruments
   
-
     
(300
)
Dividends paid to common stockholders
   
(39,433
)
   
(37,823
)
Dividends paid to Class B common stockholders
   
(3,629
)
   
(3,448
)
Repurchase of common stock held in treasury
    (54,671 )     -
 
Distributions to noncontrolling interests
    (741 )     (800 )
Cash withholding taxes paid when shares withheld for vested equity awards
   
(2,123
)
   
(1,963
)
Net cash used in financing activities
   
(100,597
)
   
(44,334
)
Effect of exchange rate changes on cash and cash equivalents
   
(35,222
)
   
(8,360
)
                 
Net increase (decrease) in cash and cash equivalents
   
(39,116
)
   
211,886
 
                 
Cash and cash equivalents at beginning of period
   
774,108
     
619,874
 
Cash and cash equivalents at end of period
 
$
734,992
   
$
831,760
 

See accompanying notes.
10


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Equity
(Unaudited - In thousands, except share and per share amounts)

   
Common
Stock
   
Class B
Convertible
Common
Stock
   
Capital in
Excess of Par
Value
   
Retained
Earnings
(Accumulated
Deficit)
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Total Vishay
Stockholders'
Equity
   
Noncontrolling
Interests
   
Total
Equity
 
Balance at December 31, 2020
 
$
13,256
   
$
1,210
   
$
1,409,200
   
$
138,990
   
$
13,559
 
$
1,576,215
   
$
2,800
   
$
1,579,015
 
Cumulative effect of accounting change for adoption of ASU 2020-06
   
-
     
-
     
(66,078)
     
20,566
   
-
     
(45,512
)
   
-
     
(45,512
)
Net earnings
   
-
     
-
     
-
     
71,435
     
-
     
71,435
     
208
     
71,643
 
Other comprehensive income (loss)
   
-
     
-
     
-
     
-
     
(25,085
)
   
(25,085
)
   
-
     
(25,085
)
Issuance of stock and related tax withholdings for vested restricted stock units (149,722 shares)
   
15
     
-
     
(1,978
)
   
-
     
-
     
(1,963
)
   
-
     
(1,963
)
Dividends declared ($0.095 per share)
   
-
     
-
     
20
     
(13,777
)
   
-
     
(13,757
)
   
-
     
(13,757
)
Stock compensation expense
   
-
     
-
     
4,120
     
-
     
-
     
4,120
     
-
     
4,120
 
Balance at April 3, 2021
 
$
13,271
   
$
1,210
   
$
1,345,284
   
$
217,214
   
$
(11,526
)
 
$
1,565,453
   
$
3,008
   
$
1,568,461
 
Net earnings
   
-
     
-
     
-
     
93,192
     
-
     
93,192
     
189
     
93,381
 
Other comprehensive income
   
-
     
-
     
-
     
-
     
11,305
     
11,305
     
-
     
11,305
 
Distributions to noncontrolling interests
   
-
     
-
     
-
     
-
     
-
     
-
     
(800
)
   
(800
)
Dividends declared ($0.095 per share)
   
-
     
-
     
20
     
(13,777
)
   
-
     
(13,757
)
   
-
     
(13,757
)
Stock compensation expense
   
-
     
-
     
828
     
-
     
-
     
828
     
-
     
828
 
Balance at July 3, 2021
 
$
13,271
   
$
1,210
   
$
1,346,132
   
$
296,629
   
$
(221
)
 
$
1,657,021
   
$
2,397
   
$
1,659,418
 
Net earnings
   
-
     
-
     
-
     
96,820
     
-
     
96,820
     
262
     
97,082
 
Other comprehensive income (loss)
   
-
     
-
     
-
     
-
     
(15,392)
     
(15,392)
     
-
     
(15,392)
 
Dividends declared ($0.095 per share)
   
-
     
-
     
20
     
(13,777
)
   
-
     
(13,757
)
   
-
     
(13,757
)
Stock compensation expense
   
-
     
-
     
828
     
-
     
-
     
828
     
-
     
828
 
Balance at October 2, 2021
 
$
13,271
   
$
1,210
   
$
1,346,980
   
$
379,672
   
$
(15,613
)
 
$
1,725,520
   
$
2,659
   
$
1,728,179
 

 Continues on following page.
11


VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Equity (continued)
(Unaudited - In thousands, except share and per share amounts)

   
Common
Stock
   
Class B
Convertible
Common
Stock
   
Capital in
Excess of Par
Value
   
Retained
Earnings
(Accumulated
Deficit)
    Treasury Stock
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Total Vishay
Stockholders'
Equity
   
Noncontrolling
Interests
   
Total
Equity
 
Balance at December 31, 2021
 
$
13,271
   
$
1,210
   
$
1,347,830
   
$
401,694
    $ -    
$
(20,252
)
 
$
1,743,753
   
$
2,967
   
$
1,746,720
 
Net earnings
   
-
     
-
     
-
     
103,573
      -      
-
     
103,573
     
377
     
103,950
 
Other comprehensive income (loss)
   
-
     
-
     
-
     
-
      -      
(11,925
)
   
(11,925
)
   
-
     
(11,925
)
Issuance of stock and related tax withholdings for vested restricted stock units (189,731 shares)
   
19
     
-
     
(2,142
)
   
-
      -      
-
     
(2,123
)
   
-
     
(2,123
)
Dividends declared ($0.10 per share)
   
-
     
-
     
22
     
(14,491
)
    -      
-
     
(14,469
)
   
-
     
(14,469
)
Stock compensation expense
   
-
     
-
     
3,842
     
-
      -      
-
     
3,842
     
-
     
3,842
 
Repurchase of common stock held in treasury (513,227 shares)
    -       -       -       -       (9,873 )     -       (9,873 )     -       (9,873 )
Balance at April 2, 2022
  $ 13,290       1,210       1,349,552       490,776       (9,873 )     (32,177 )     1,812,778       3,344       1,816,122  
Net earnings
    -       -       -       112,388       -       -       112,388       381       112,769  
Other comprehensive income (loss)
    -       -       -       -       -       (48,167 )     (48,167 )     -       (48,167 )
Distributions to noncontrolling interests
    -       -       -       -       -       -       -       (733 )     (733 )
Issuance of stock and related tax withholdings for vested restricted stock units (11,308 shares)     1       -       (1 )     -       -       -       -       -       -  
Dividends declared ($0.10 per share)
    -       -       22       (14,361 )     -       -       (14,339 )     -       (14,339 )
Stock compensation expense
    -       -       1,047       -       -       -       1,047       -       1,047  
Repurchase of common stock held in treasury (1,400,039 shares)     -       -       -       -       (26,288 )     -       (26,288 )     -       (26,288 )
Balance at July 2, 2022   $ 13,291       1,210       1,350,620       588,803       (36,161 )     (80,344 )     1,837,419       2,992       1,840,411  
Net earnings
    -       -       -       140,061       -       -       140,061       502       140,563  
Other comprehensive income (loss)
    -       -       -       -       -       (48,749 )     (48,749 )     -       (48,749 )
Distributions to noncontrolling interests
    -       -       -       -       -       -       -       (8 )     (8 )
Dividends declared ($0.10 per share)
    -       -       22       (14,276 )     -       -       (14,254 )     -       (14,254 )
Stock compensation expense
    -       -       828       -       -       -       828       -       828  
Repurchase of common stock held in treasury (978,338 shares)     -       -       -       -       (18,510 )     -       (18,510 )     -       (18,510 )
Balance at October 1, 2022
  $ 13,291       1,210       1,351,470       714,588       (54,671 )     (129,093 )     1,896,795       3,486       1,900,281  

See accompanying notes.
12

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 1 – Basis of Presentation

The accompanying unaudited consolidated condensed financial statements of Vishay Intertechnology, Inc. (“Vishay” or the “Company”) have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes necessary for presentation of financial position, results of operations, and cash flows required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. The information furnished reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair summary of the financial position, results of operations, and cash flows for the interim periods presented.  The financial statements should be read in conjunction with the consolidated financial statements filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.  The results of operations for the fiscal quarter and nine fiscal months ended October 1, 2022 are not necessarily indicative of the results to be expected for the full year.

The Company reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first fiscal quarter, which always begins on January 1, and the fourth fiscal quarter, which always ends on December 31.  The four fiscal quarters in 2022 end on April 2, 2022, July 2, 2022, October 1, 2022, and December 31, 2022, respectively.  The four fiscal quarters in 2021 ended on April 3, 2021, July 3, 2021, October 2, 2021, and December 31, 2021, respectively. 

Reclassifications

Certain prior period amounts have been reclassified to conform to the current financial statement presentation.

Note 2 - Acquisition Activities

As part of its growth strategy, the Company seeks to expand through targeted acquisitions of other manufacturers of electronic components.  These acquisition targets include businesses that have established positions in major markets, reputations for product quality and reliability, and product lines with which the Company has substantial marketing and technical expertise.  It also includes certain businesses that possess technologies which the Company expects to further develop and commercialize.

Subsequent Event

On October 28, 2022, 2022, Vishay acquired MaxPower Semiconductor, Inc. ("MaxPower"), a San Jose, California-based fabless power semiconductor provider dedicated to delivering innovative and cost-effective technologies that optimize power management solutions.  MaxPower's proprietary device structures and process techniques provide leading edge silicon and silicon carbide ("SiC") MOSFET products.  Its SiC product development targets automotive and industrial applications.

Vishay paid cash of $50,000, net of cash acquired, at closing.  Related to the transaction, Vishay may also be required to make certain contingent payments of up to $57,500, which would be payable upon the achievement of certain technology milestones and the occurrence of certain non-operating events.  The purchase price for U.S. GAAP purposes will include the fair value, as of the acquisition date, of certain future contingent payments.  To the extent contingent payments are deemed compensatory in nature, such payments will be recognized as expense in future periods, and will thus not be included in the U.S. GAAP purchase price.

MaxPower will be incorporated into Vishay’s MOSFETs reportable segment, and the goodwill related to this acquisition will be included in the MOSFETs reporting unit for goodwill impairment testing. 

Note 3 – Impact of COVID-19 Pandemic

The Company's operations in the People's Republic of China, particularly in Shanghai, were impacted by COVID-19 government mandated shut-downs of the Company's facilities in the second fiscal quarter of 2022.  The Company incurred incremental costs separable from normal operations that are directly related to the shut-downs, primarily wages paid to manufacturing employees during the shut-downs, additional wages and hardship allowances for working during lockdown periods, and temporary housing for employees due to travel restrictions, which were partially offset by government subsidies.  The net impact of the costs and subsidies are reported as cost of products sold ($6,661) and selling, general, and administrative expenses of ($546) based on employee function on the consolidated condensed statement of operations for the nine fiscal months ended October 1, 2022.

13

NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(dollars in thousands, except per share amounts)

Note 4 – Leases

The net right of use assets and lease liabilities recognized on the consolidated condensed balance sheets for the Company's operating leases were as follows:

 
October 1, 2022
   
December 31, 2021
 
Right of use assets
           
Operating Leases
           
Buildings and improvements
 
$
114,620
   
$
112,951
 
Machinery and equipment
   
4,056
     
4,684
 
Total
 
$
118,676
   
$
117,635
 
Current lease liabilities
               
Operating Leases
               
Buildings and improvements
 
$
21,395
   
$
20,851
 
Machinery and equipment
   
2,255
     
2,541
 
Total
 
$
23,650
   
$
23,392
 
Long-term lease liabilities
               
Operating Leases
               
Buildings and improvements
 
$
94,023
   
$
97,890
 
Machinery and equipment
   
1,724
     
2,097
 
Total
 
$
95,747
   
$
99,987
 
Total lease liabilities
 
$
119,397
   
$
123,379
 

Lease expense is classified in the statements of operations based on asset use.  Total lease cost recognized on the consolidated condensed statements of operations is as follows:

 
Fiscal quarters ended
   
Nine fiscal months ended
 
   
October 1, 2022
   
October 2, 2021
   
October 1, 2022
   
October 2, 2021
 
Lease expense
                       
Operating lease expense
 
$
6,258